E-Business Management Essay Example | Topics and Well Written Essays - 2000 words

E-Business Management - Essay Example The highly dynamic and competitive characteristics of e-businesses offer to generate revenue streams in various ways. As Dave (2003) noted, â€Å"all electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes†, organization needs improved e-business technologies in order to formulate a sustainable business strategy. Innovation among e-businesses usually occurs through new exchange and transaction mechanisms not found in traditional organizations. Due to lack of geographical boundaries, virtual markets are reachable to a huge number of people and products. It is also economically viable for firms to outsource their services quickly and cheaply to the developing countries. Over the last few decades, the dynamics of highly competitive global industry have forced organizations to rethink and re-evaluate the way they design competitive strategies in accordance with the fluctuating demand and d iverse technologies. According to Robert Grant (2005), â€Å"When the external environment is in a state of flux, the firm itself, in terms of its bundle of resources and capabilities, may be a much more stable basis on which to define its identity†. ... Strategic Application of E-CRM and E-Marketing According to Lee-Kelley, Gilbert and Mannicom (2003), â€Å"e-CRM refers to the marketing activities, tools and techniques, delivered over the Internet (using technologies such as Web sites and e-mail, data-capture, warehousing and mining) with a specific aim to locate, build and improve long-term customer relationships to enhance their individual potential.† The adoption of e-commerce has long-term impacts on business profitability. Larger customers reach and existing customers’ base has potential for increasing revenues. Additionally, electronic service greatly reduces the operational costs such as staff, transport and materials reducing the purchasing costs. It also helps to improve communication and relationships with workforce, suppliers and customers. Complex business processes get simplified and standardized increasing the speed of access to information. Integrated business processes improve reliability, accuracy and also shorten the delivery time. After the advent of World Wide Web, firms are using digital technologies such as intranets, extranets, online purchasing and e-government services to promote sales. Companies experienced increase in their stock prices by adapting to the internet. For instance, the web store of North West Supplies is online since 2002. In the first six months of website launch, the company had increased sales by ?20,000 through application of pay per click advertising. In order to reduce further advertising costs, the company redesigned its website and implemented Search Engine Optimization (SEO). The improvements in website design and marketing methods added to the NWS brand value increasing the annual turnover from ?250,000 to ?350,000. For